Re-evaluating the practice of hibah trust in Malaysia

Purpose – This paper aims to re-evaluate and thus recommending possible ways in improving the current practice of hibah trust in Malaysia. Design/methodology/approach – This study conducts a thorough and critical review on relevant literature on Islamic wealth management and estate distribution. Be...

Full description

Bibliographic Details
Main Authors:	Noordin, Nazrul Hazizi, Ismail, Muhammad Issyam, Abd Rahman, Muhammad Abd Hadi, Haron, Siti Nurah, Abdullah, Adam
Format:	Article
Language:	English English English
Published:	Emerald Group Publishing Ltd 2016
Subjects:	HG Finance HG4301 Trust services
Online Access:	http://irep.iium.edu.my/52245/ http://irep.iium.edu.my/52245/ http://irep.iium.edu.my/52245/ http://irep.iium.edu.my/52245/19/52245_Re-evaluating%20the%20practice%20of%20hibah_text.pdf http://irep.iium.edu.my/52245/20/52245_Re-evaluating%20the%20practice%20of%20hibah_WOS.pdf http://irep.iium.edu.my/52245/21/52245_Re-evaluating%20the%20practice%20of%20hibah_SCOPUS.pdf

id	iium-52245
recordtype	eprints
spelling	iium-522452017-06-05T00:56:17Z http://irep.iium.edu.my/52245/ Re-evaluating the practice of hibah trust in Malaysia Noordin, Nazrul Hazizi Ismail, Muhammad Issyam Abd Rahman, Muhammad Abd Hadi Haron, Siti Nurah Abdullah, Adam HG Finance HG4301 Trust services Purpose – This paper aims to re-evaluate and thus recommending possible ways in improving the current practice of hibah trust in Malaysia. Design/methodology/approach – This study conducts a thorough and critical review on relevant literature on Islamic wealth management and estate distribution. Besides, the current practice and application of hibah trust by the Malaysian trustee companies such as Amanah Raya Berhad and As-Salihin Trustee Berhad is analyzed based on information gathered from their publications and direct consultation. Findings – Based on the comparison made between hibah trust and its conventional counterpart, living trust, this study found that that the hibah trust product mirrors the conventional living trust, which provides a high degree of freedom to the benefactor to decide on the distribution of his wealth without taking into consideration the interest of the eligible heirs under farai’d. Nevertheless, it is undeniable that the practice of hibah trust would be able to expedite the lengthy and complex procedures of inheritance, reduce administrative costs, avoid legal impediments and inheritance tax. Practical Implications – This paper proposes a comprehensive framework for an improved asset distribution under hibah trust within the Malaysian Islamic wealth management industry by highlighting the significance of fara’id and wasiyyah rules. This proposed framework of hibah trust would become a useful reference for the policy-makers in designing a dedicated regulation or legal provisions in the established laws that will govern the practice of hibah trust in Malaysia. Originality/value – The novelty of this paper lies in highlighting the importance of adhering to the law of Islamic inheritance rules as ordained by Allah s.w.t in structuring contemporary Islamic estate planning instruments such as hibah trust, which is not evident in the current practice. Emerald Group Publishing Ltd 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/52245/19/52245_Re-evaluating%20the%20practice%20of%20hibah_text.pdf application/pdf en http://irep.iium.edu.my/52245/20/52245_Re-evaluating%20the%20practice%20of%20hibah_WOS.pdf application/pdf en http://irep.iium.edu.my/52245/21/52245_Re-evaluating%20the%20practice%20of%20hibah_SCOPUS.pdf Noordin, Nazrul Hazizi and Ismail, Muhammad Issyam and Abd Rahman, Muhammad Abd Hadi and Haron, Siti Nurah and Abdullah, Adam (2016) Re-evaluating the practice of hibah trust in Malaysia. Humanomics, 32 (4). pp. 418-436. ISSN 0828-8666 http://www.emeraldinsight.com/doi/pdfplus/10.1108/H-05-2016-0044 10.1108/H-05-2016-0044
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English English
topic	HG Finance HG4301 Trust services
spellingShingle	HG Finance HG4301 Trust services Noordin, Nazrul Hazizi Ismail, Muhammad Issyam Abd Rahman, Muhammad Abd Hadi Haron, Siti Nurah Abdullah, Adam Re-evaluating the practice of hibah trust in Malaysia
description	Purpose – This paper aims to re-evaluate and thus recommending possible ways in improving the current practice of hibah trust in Malaysia. Design/methodology/approach – This study conducts a thorough and critical review on relevant literature on Islamic wealth management and estate distribution. Besides, the current practice and application of hibah trust by the Malaysian trustee companies such as Amanah Raya Berhad and As-Salihin Trustee Berhad is analyzed based on information gathered from their publications and direct consultation. Findings – Based on the comparison made between hibah trust and its conventional counterpart, living trust, this study found that that the hibah trust product mirrors the conventional living trust, which provides a high degree of freedom to the benefactor to decide on the distribution of his wealth without taking into consideration the interest of the eligible heirs under farai’d. Nevertheless, it is undeniable that the practice of hibah trust would be able to expedite the lengthy and complex procedures of inheritance, reduce administrative costs, avoid legal impediments and inheritance tax. Practical Implications – This paper proposes a comprehensive framework for an improved asset distribution under hibah trust within the Malaysian Islamic wealth management industry by highlighting the significance of fara’id and wasiyyah rules. This proposed framework of hibah trust would become a useful reference for the policy-makers in designing a dedicated regulation or legal provisions in the established laws that will govern the practice of hibah trust in Malaysia. Originality/value – The novelty of this paper lies in highlighting the importance of adhering to the law of Islamic inheritance rules as ordained by Allah s.w.t in structuring contemporary Islamic estate planning instruments such as hibah trust, which is not evident in the current practice.
format	Article
author	Noordin, Nazrul Hazizi Ismail, Muhammad Issyam Abd Rahman, Muhammad Abd Hadi Haron, Siti Nurah Abdullah, Adam
author_facet	Noordin, Nazrul Hazizi Ismail, Muhammad Issyam Abd Rahman, Muhammad Abd Hadi Haron, Siti Nurah Abdullah, Adam
author_sort	Noordin, Nazrul Hazizi
title	Re-evaluating the practice of hibah trust in Malaysia
title_short	Re-evaluating the practice of hibah trust in Malaysia
title_full	Re-evaluating the practice of hibah trust in Malaysia
title_fullStr	Re-evaluating the practice of hibah trust in Malaysia
title_full_unstemmed	Re-evaluating the practice of hibah trust in Malaysia
title_sort	re-evaluating the practice of hibah trust in malaysia
publisher	Emerald Group Publishing Ltd
publishDate	2016
url	http://irep.iium.edu.my/52245/ http://irep.iium.edu.my/52245/ http://irep.iium.edu.my/52245/ http://irep.iium.edu.my/52245/19/52245_Re-evaluating%20the%20practice%20of%20hibah_text.pdf http://irep.iium.edu.my/52245/20/52245_Re-evaluating%20the%20practice%20of%20hibah_WOS.pdf http://irep.iium.edu.my/52245/21/52245_Re-evaluating%20the%20practice%20of%20hibah_SCOPUS.pdf
first_indexed	2023-09-18T21:14:02Z
last_indexed	2023-09-18T21:14:02Z
_version_	1777411443000344576

Re-evaluating the practice of hibah trust in Malaysia

Similar Items